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RichLeja
New Member

How do I enter a limit on the home equity loan interest?

I cannot find a place to input a lesser amount for the interest on a home equity loan.  The note on the program says that Home equity loans are limited to $100K.  But, my loan is more than that and - unlike the main home interest - I cannot find a place to change or in a limit of the interest (and deduction) to comply with this rule.  It would seem that entering an amount that entered an amount that is different that my 1098 would an unnecessary flag for the IRS.

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1 Reply
AmandaR1
New Member

How do I enter a limit on the home equity loan interest?

You should enter the allowed amount in box 1. Form 1098 is more of a reporting requirement, but there's also a box to check if the interest amount you entered is different than on the 1098. On the next screen you'll be able to explain that the limitation applied. See the attached screenshots. 

If you click the 'Learn more' blue hyperlink next to box 1, you'll find these instructions. As the instructions state, refer to IRS Publication 936 HERE and look for Table 1, Deductible Home Mortgage Interest, if you need assistance on calculating the amount. 

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